Question

Prepare a classified balance sheet from T accounts. (Using Formulas) The Following transaction occurred for Lantana Company during its first month of operations and have been recorded in the T-Accounts. A. Received $50,000 cash from Lantana, the sole proprietor B. Purchased land for $,20,000, paid $5,000 in cash and signed a 2-year note for the remainder. C. Bought $900 of supplies on account. D. Purchased $10,000 of equipment,paying cash. E. Paid $500 on account for supplies purchased in transaction. {Accounting Book: Fundamental Accounting Principles : John J.Wild / Ken W. Shaw 24th Edition)

Answer 1

LANTANA COMPANY
Balance Sheet
At December 31st, 20--
Assets	Amount		Liabilities	Amount
Current Assets			Current Liabilities
Cash	$ 34,500.00		Accounts Payable	$        400.00
Supplies	$        900.00		Total Current Liabilities		$        400.00
Total Current Assets		$ 35,400.00	Long Term Liabilities
Long Term Assets			Note Payable		$ 15,000.00
Land	$ 20,000.00		Total Liabilities		$ 15,400.00
Equipment	$ 10,000.00		Stock holder's Equity
Total Long Term Assets		$ 30,000.00	Common Stock	$ 50,000.00
			Retained Earnings	$                 -
			Total Stock holder's Equity		$ 50,000.00
Total Assets		$ 65,400.00	Total Liabilities & Stock Holders Equity		$ 65,400.00